HomeMy WebLinkAboutREP FC 441 12/07/1987 1984-1988 Al, REPORT OF THE `►►
COMMITTEE ON FINANCE
Date: December 7 , 1987 Re: Comm. 1063
Place: Councilroom
Time: 10 :00 a.m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution
No. 304-87 , reports as follows:
The purpose of Resolution No. 304-87 is to raise the County of
Hawaii fuel tax rate by 3 .785 cents per gallon or 1 cent per liter .'
Your committee is aware that the resolution includes provisions for
site specific projects and that the increase will sunset in June
1993 .
Your committee is also aware that the tax is expected to generate an
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additional $1 .5 million in highway funds annually.
Your committee further learned that while the administration is
proposing that the revenues realized be designated so that
45 percent go toward operating expenses and 55 percent toward
resurfacing and rehabilitation , in a later communication, dated
August 13 , 1987, it expressed the idea that it had no objections to
the Council redesignating the revenues, as desired .
Your committee received communications and testimony opposing the
imposition of an additional fuel tax because it would trigger an
inflationary trend and also there existed the danger that the
revenues derived might not be used for the intended purpose. The
Hawaii County Taxpayers Association contended that such an issue
should be put directly before the people to decide in a referendum.
A communication opposing a fuel tax increase outlined a -plan that
would relegate road maintenance to the private sector on a
contractual basis .
Other communications that your committee received, primarily from
business and labor groups and individuals , were in favor of raising
the fuel tax because of the need to repair our roads . One caveat
that was expressed by many who favored the increase was that all or
at least most of the revenues derived from the tax increase should
go toward resurfacing and rehabilitation rather than other unrelated
uses .
FC REPORT NO . 44
ADOPTED : JAN 6 19 ___..._....
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10 III \
FC-441. Page 2 December 7 , 1987
Your Committee on Finance does not concur with the intent of
Resolution No. 304-87 . Your committee will be working on another
plan of funding road resurfacing and rehabilitation. The details of
this new proposal will be worked out by the Chairpersons of the
Finance and Public Works Committees and would be available in about
30 days . The alternate plan would designate 100 percent of the
revenues realized for road resurfaci g and rehabilitation. Your
committee recommends that Resoluti No. 304-87 be filed .
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FRANK DE LUZ III, CHAIRMAN
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LORRA E R. HAKU-INO YE, V.C. illAM S L. K. DAHLBERG, MEMBER
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TAKASHI DO NGO, MEM', R RUSSELL S . KOKUBUN, MEMBER
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I MERL K. LAI, EMB R 410 PENCER K. SCHUTTE, MEMBER
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